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  • How Long Does It Take to Rebuild Credit?

    How Long Does It Take to Rebuild Credit?

    Call: 888-297-6203

    In terms of credit rating, nothing could be worse than bankruptcy. Since it has long term effects on your credit history, you should weigh in all options before choosing to file for bankruptcy. As per Los Angeles based bankruptcy law firm Recovery Law Group, bankruptcy is a red flag which warns creditors of your financial issues. Depending on the bankruptcy chapter, the bankruptcy record remains on your credit report for 7-10 years. Thus, for this duration, you will be facing negative effects such as getting new credit at reasonable rates, etc.

    Though bankruptcy can cause numerous problems in getting new credit; however, with certain steps like managing your finances and being responsible with your budget, can help improve your credit rating slowly and steadily. Continuous efforts in this direction can help you rebuild credit even before bankruptcy is removed from your credit reports. In case of any doubts related to bankruptcy, call experienced lawyers at 888-297-6023.


      *Are you more than 60 days past due on your mortgage?

      *Do you own a home?

      Are you currently working?

      By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

    • Rebuilding Credit After Bankruptcy

      Rebuilding Credit After Bankruptcy

      Call: 888-297-6203

      Everything takes time. Neither does a person become bankrupt overnight, nor does building your credit. Though bankruptcy is an effective way to get rid of a huge amount of debt, it has repercussions too. It can tank your credit score like anything. Since bankruptcy becomes public record, your efforts to get a loan might be extremely difficult for a long time. Chapter 7 and Chapter 13 bankruptcies remain for ten and seven years respectively on your credit reports. This is because the majority of your debts are discharged without paying anything in the former case, while in the latter case, some portion of the debts is repaid through a repayment plan. Lawyers of Los Angeles based bankruptcy law firm Recovery Law Group, say the situation is not permanent and can be reversed with some efforts on your part.

      All accounts mentioned in bankruptcy remain on your credit report for a duration of seven years, from the time they were delinquent or bankruptcy filing date. However, it does not mean that you will be stuck with bad credit and unable to get a loan again. Making certain decisions can help rebuild your credit. These include:

      • Paying bills on time. Managing your finances is important and the primary step to rebuilding credit. Paying your rent, mortgage or other loans on time can improve your chances of getting credit in the future.

      • Create and live as per budget. Bankruptcy involves a compulsory course for financial counseling which helps you to better manage your finances. The primary step involved is- creating a budget, avoiding excessive spending and taking on additional debt.

      • Keep making student loan payments. Student debts are not discharged in bankruptcy; hence you should keep making payments towards this debt. Timely payments will help rebuild your credit score.

      Qualifying for a new credit card will take time after bankruptcy. Though initially, you might find it difficult, there are ways to improve your chances of getting a standard credit card. One of the best ways is to get a secured card so that you do not indulge in overspending. In case of a secured credit card, the card issuer is given a security deposit which provides a spending limit on the card. Through this, you can easily build your credit after bankruptcy. You can use it every month to pay bills regularly to improve your credit history. Ensure that the secured credit card issuer reports your payments to credit bureaus.

      Another way of improving your credit rating is by asking a family or friend with good credit to assist you. You could either ask them to co-sign your loan or credit card or get yourself added as an authorized user for someone else’s credit card. However, this has risks involved as if you default, they will be held responsible for paying back your debts. This can alter your relationships; therefore, you must carefully consider this option before choosing it.

      Managing debts is an integral part of rebuilding credit score. Another option for individuals is the credit-builder loan. This involves small sums with repayment expected within a couple of years. The interest rate is generally high (up to 10%). Before choosing this option, find out if the lender reports to credit bureaus.

      Having legal assistance is important to get through bankruptcy. Call 888-297-6023 to consult with experienced lawyers.


        *Are you more than 60 days past due on your mortgage?

        *Do you own a home?

        Are you currently working?

        By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

      • What Happens if You Forget to Include a Creditor in Your Bankruptcy?

        What Happens if You Forget to Include a Creditor in Your Bankruptcy?

        A lot of paperwork is involved when you file for bankruptcy, including documentation for your income, assets, and a comprehensive list of your debts as well as your creditors. This complete list of creditors is used by the court to inform everyone concerned about your bankruptcy. Since all of this involves a lot of paperwork, it is quite possible that one or two creditors might miss making the list. Since creditors also have legal rights in your bankruptcy case, if any of them fails to get a mention in your list of creditors while filing for bankruptcy, what effect can it have on your case?

        What is the creditor mailing list?

        According to Los Angeles based law firm Recovery Law Group, the “Creditor Mailing List” (also known as the mailing matrix) should include all your creditors along with their contact information. It must also include debts like student loan debt which are not handled via bankruptcy. Once you file for bankruptcy, this mailing matrix is used to inform all creditors of it. This is an important step as creditors wish to be kept in the loop when such an occurrence happens.

        The creditors, depending on which chapter of bankruptcy you file, might be involved in the confirmation of your debt, or pay-out of your liquidated assets, or might be required to approve the repayment plan. To be eligible for their repayment portion, they are required to file a “proof of claim.” If they have no information about your bankruptcy, they cannot file a proof of claim and thus will lose their chance of getting payment from your bankruptcy.

        The creditor mailing list is an integral part of your case. When you file for bankruptcy, you get automatic stay protection which effectively ceases all collection actions by creditors. Unless the creditors are aware of your bankruptcy, they will not follow automatic stay. Thus you might lose wages to garnishment or have your home foreclosed or face a lawsuit for collection if you miss out any creditor on the creditor mailing list. Additionally, omitting a creditor can affect your bankruptcy too! The bankruptcy forms are filed under a penalty of perjury, i.e. leaving any information off the papers intentionally is considered a crime. The unintentional omission is understood by the court and you are given a chance to rectify your mistake. If you have unintentionally left any creditor off from the mailing list, the consequence depends on which chapter of bankruptcy you have filed.

        Adding creditor in Chapter 7 bankruptcy

        In Chapter 7 bankruptcy, also known as liquidation bankruptcy, your non-exempt assets are surrendered to the court which is then sold off to pay the creditors. Many times, thanks to state and federal exemptions, debtors have little to no non-exempt assets; such cases are known as “no asset” bankruptcy cases. When some non-exempt property is available, which can be sold off to pay creditors, the bankruptcy is known as an “asset” bankruptcy. In case you forget to include a creditor in the creditor mailing list while filing for Chapter 7 bankruptcy, the outcome depends on whether it is an asset or no-asset bankruptcy.

        • Asset bankruptcy

        When you have non-exempt assets, unsecured creditors get paid in proportion to the amount you owe them, when they file a proof of claim. When you leave a creditor off the mailing list, they won’t be notified of bankruptcy and subsequently will not be able to file proof of claim, thereby losing out on their repayment amount. Any unsecured creditor who is left out of their rights can go after you to collect the dues after a bankruptcy discharge. The only respite you have in this case is that they can collect dues only from non-exempt assets. Chapter 7 bankruptcy exemptions can help save a number of your assets. Secured creditors, if they are left out of creditor mailing list, have rights to pursue collection actions against you after your bankruptcy discharge.

        • No asset bankruptcy

        In this case, since there are no non-exempt assets, the unsecured creditors (credit card, medical bills, personal loans, etc.) do not get anything in bankruptcy. Since unsecured creditors do not have any property attached to their debt, they don’t have any proof of claim to file. If you accidentally forget to add an unsecured creditor’s name to the list, not much of consequence happens in this particular case. As is the case with no asset bankruptcy, unsecured creditors, listed or not, get nothing in such cases. The debt gets discharged with creditor having no claim to collect.

        Consequences of leaving a secured creditor out of the creditor mailing list are far more serious than leaving an unsecured creditor out. You can face collection actions after a bankruptcy discharge. Secured debts which are linked to the property are not discharged during bankruptcy but can be surrendered or reorganized. All of this requires the involvement of the creditor. If you wish to reaffirm your car loan, you need to make payments through and even after your bankruptcy. If you miss adding the name of your auto lender or any other secured creditor off the mailing list, the debt won’t be discharged and the creditors are eligible to collect the payment even after your bankruptcy, which may include foreclosure and/or repossession of said property.

        Certain debts like child and spousal support, government taxes, etc. are not discharged during bankruptcy. Since these debts won’t be discharged, the accidental omission of such debts will not have any effect on your bankruptcy case. They were and remain collectible even after bankruptcy. Since a majority of Chapter 7 cases are no asset cases, there aren’t any major consequences of the accidental omission of a creditor.

        What happens if you fail to add a creditor in Chapter 13 bankruptcy?

        Creditors have more involvement in a Chapter 13 bankruptcy compare to a Chapter 7 case. They have a say to review, object or approve your repayment plan. If and when your repayment plan is approved, the payments are divided amongst your creditors proportionately. If you fail to include a creditor in this type of bankruptcy, the debt won’t be included and therefore not discharged at the end of your bankruptcy. This leaves the creditor free to attempt collecting the debt after your bankruptcy discharge.

        Options available for you if you forget to add any creditor when you file for bankruptcy

        Irrespective of the type of bankruptcy filed, if you realize you have unintentionally omitted any creditor, you should contact and inform your bankruptcy attorney of it. They can help guide you on ways to fix the mistake. If you haven’t reached the end of your bankruptcy, filing a form in bankruptcy court to add the missing creditor can help get the problem solved. In case you have got your bankruptcy discharge and get a collection notice from a left out creditor, you need to contact your bankruptcy attorney. Depending on the type of bankruptcy you had filed, the lawyer can find out if the creditor has any right to collect dues or not. An unsecured creditor trying to collect dues from you has no right to them if you filed for a no-asset Chapter 7 bankruptcy. The creditor can be informed by the lawyer of the case in such a situation. If that is not the case, the bankruptcy lawyers can assess whether different factors like the statute of limitation can affect your dues to the creditor.

        If you remember to have left out a creditor, contact your bankruptcy attorney immediately. Wilful omitting of a creditor is considered a form of perjury, which can lead to the filing of criminal charges and even dismissal of your bankruptcy case. Bankruptcy can be trying times, emotionally and financially. It is important to have a bankruptcy attorney by your side in such cases. If you don’t have one, feel free to call 888-297-6203 to get your case evaluated.


          *Are you more than 60 days past due on your mortgage?

          *Do you own a home?

          Are you currently working?

          By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

        • The Creditors Meeting – All That You Need To Know!

          The Creditors Meeting – All That You Need To Know!

          The creditors meeting or the 341 hearing indicates the commencement of the case. This is mandated by the United States Bankruptcy Court for the specific states and is scheduled 30 days after the bankruptcy filing. The date and the time for this meeting of creditors along with the debtor is notified within a couple of weeks of filing.

          Here’s how you need to plan for the meeting as a debtor –

          • The meeting generally happens over a span of 2-3 hours. Also, take into account the travel time needed to reach the court
          • There is no imperative dress code needed to bead hered to or to dress up fancily
          • Getting through the security of the courthouse will be a process to adhere to – metal detectors for the personnel, X-Ray scanner for the objects that you carry, etc. If you are carrying anything that is prohibited by the court house, hand over to the security and reclaim prior to leaving the courthouse after your 341 hearing

          Preparing for the meeting

          Every the bankruptcy case will be assigned a bankruptcy trustee who generally questions regarding your financial status and the current scenario of bankruptcy. As a debtor, be prepared to answer his questions that are just directed to you for the purpose of confirming all the disclosed information or to gather supporting details. There is nothing to be worried and anxious about this interrogation as long as the debtors appear for the hearing and answer every question honestly.

          Note the below about the meeting –

          • 341 hearings are very concise and peaceful meetings
          • No justification for the case of bankruptcy is expected from the debtor
          • There is no mandatory attendance expected from the creditors for this hearing – so they rarely show up
          • If the trustee or creditors uncover newer facts, they can request the judge to file a motion or an adversary proceeding. Hence it is advised that you discuss the proceedings with your bankruptcy attorney prior to the meeting and iron out all the facts involved in the bankruptcy filing

          The Creditors Meeting

          The actual creditors meeting in the courthouse can be scheduled for you and for many other debtors around the same time. So being on top of the list, that is posted outside of the door, will indicate you could be called in sooner than the others else you may need to wait for some the time before you are called in. But look at the wait time as an opportunity to know of the meeting protocol about what to expect, and how to respond to questions.

          On the calling of your name, you will be asked to sit at a table near the front of the courtroom. After swearing you in, and seeking proof of your identity (produce the Social Security Number and a photo ID), the meeting commences. The bankruptcy trustee will be reviewing your forms and may pose a few questions. Answer them honestly in line with the information disclosed in the documentation. The key part of this meeting would be to validate the effectiveness of your repayment plan to repay the debts in the stipulated time and the fairness in treating all creditors equally.

          Meeting conclusion

          If there are creditors who have turned up for this 341 hearing, they can pose their queries once the trustee finishes. The type of creditors who turn up may be the secured creditors like your mortgage lender – it could be for the purpose of contending the collateral values.

          Remember that the meeting of creditors is only the start of the bankruptcy case negotiations and hence the concerns of the trustee will also be treated with equal importance by the judge. The culmination to the filing will only occur after a month or two later.

          In order that you are well prepared and equipped with the right amount of information, get the assistance of Recovery Law Group – they serve clientele from California, Nevada and Texas states.


            *Are you more than 60 days past due on your mortgage?

            *Do you own a home?

            Are you currently working?

            By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

          • Can Bankruptcy Help in Getting Rid of Credit Card Debt?

            Can Bankruptcy Help in Getting Rid of Credit Card Debt?

            Many people across geographic location and economic strata are facing the problems of bankruptcy. Bad financial decisions or misfortune can be the reason behind anyone facing insurmountable debts. However, managing such a situation can be extremely difficult and tricky. More often than not, people take the help of credit cards to clear off dues, unfortunately accumulating further debts. Many times, people are just trying to find a balance between various dues and card payments trying to ward off debt collectors. (more…)

          • In Texas? Ensure That you Adhere to These Guidelines

            In Texas? Ensure That you Adhere to These Guidelines

            Finding oneself in a pile of debts is definitely an uneventful scenario and filing for bankruptcy stands as the only viable option for this. The filing process can help to discharge some or all of the debts and get manageable payment schedules for the others. You can also take care that you are careful of building a future that is devoid of these financial mistakes.

            If you are in Texas, there are some key guidelines to be cautious about when you are filing for bankruptcy. Take a look at them now!

            •  Do not spend your retirement funds–In order to get yourself out of the bankruptcy situation, you may be seeking for several ways for paying off your debts and cover the day to day expenses. Withdrawing and using retirement funds ahead of your retirement age may incur heavy tax penalties and is not advised. You will be able to save your retirement funds when you file for bankruptcy so that your future is secured
            • Do not mislead the court with incorrect information – When you are filing for bankruptcy, you are expected to furnish a lot of your financial information. Providing any inaccurate data can put you in a position of facing criminal and civil penalties
            • Don’t evade the paying of income taxes – Owing dues on the income tax can lead you to scenarios of the debts involving income tax not being discharged. Hence ensure that you rightfully pay your taxes or report the past dues diligently when you file for bankruptcy 
            • Do not accumulate newer debts –Credit offers for new credit cards or loans can tempt you when the finances are very difficult. Newer debts that are obtained within 12 weeks before filing of a bankruptcy can be treated as fraudulent and can have a negative impact on your filing. Creditors tend to claim that new debts were obtained with no intentions of repaying them. Even if you are charging an item on your credit card, let it be related to basic amenities or for living needs. Cash advances and spending on luxury items can also lead to a lot of scrutinies
            • Do not transfer or move your assets –  When you see yourself in a position to file bankruptcy, do not transfer or sell your assets to someone else. This is treated as a scenario of hiding personal assets in lieu of filing of bankruptcy. Remember that these assets may be utilized to repay off debts and hence if your real intention is in keeping them, then consult a bankruptcy attorney such as Recovery Law Group
            •   Do not repay any debts selectively –In case you are considering clearing off certain debts ahead of your filing of bankruptcy, such as paying off personal favor done by a friend or clearing off the bills of your family physician, then it is termed as a preferential payment. The bankruptcy court determines the legal priority for repayment and if at all the settlement to creditors have been made, the bank requests the funds to be returned back from the creditors
            • Filing for bankruptcy is still fair –Avoiding conditions of filing for bankruptcy is not advised especially when debt situations take complete control of your life. Instead of selling off your assets and using up all of your savings, you can consult a bankruptcy attorney from well-renowned firms to handle your financial situation.


              *Are you more than 60 days past due on your mortgage?

              *Do you own a home?

              Are you currently working?

              By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

               

            • Do You Know Which Federal Benefits are exempted from Garnishments?

              Do You Know Which Federal Benefits are exempted from Garnishments?

              Bankruptcy can be quite intimidating. There is a pressure of being unable to cope up with the increasing demands of the debt collectors apart from the social stigma attached to bankruptcy. In case you get sued by the debt collector for non-payment of dues, and the court holds the suit, you are at a huge risk. Your bank accounts and other sources of income (employers) might be used to help settle the debt to the creditors. Lawyers of Los Angeles based law firm Recovery Law Group explain that certain funds are the same from garnishments due to them being federal benefits.

              Here’s a list of the items which are exempted from garnishments under federal benefits:

              • Veterans’ Benefits
              • Social Security Benefits
              • Service Members’ Pay
              • Supplemental Security Income (SSI) Benefits
              • Student Assistance
              • Merchant Seamen Wages
              • Civil Service and Federal Retirement and Disability Benefits
              • Military Annuities and Survivors’ Benefits
              • Railroad Retirement Benefits
              • Foreign Service Retirement and Disability Benefits
              • Federal Emergency Management Agency Federal Disaster Assistance
              • Longshoremen’s and Harbour Workers’ Death and Disability Benefits
              • Compensation for Injury, Death, or Detention of Employees of U.S. Contractors Outside the U.S.

              Exceptions to the Rule

              As with most cases, there are exceptions to the federal benefits too. Though most of the time, the above-mentioned benefits are exempted from debt collectors, there are exceptional cases too. Certain debts like a student loan, alimony, child support or taxes, are not exempted even after bankruptcy. In these cases, your benefits can be used to pay off these debts. It is therefore important that you keep your business in order.
              Consulting a bankruptcy attorney can shed some light on the prospective options available to you during bankruptcy. In case a debt collector sues you, you should respond to the suit instead of avoiding it or lying low. This might cost you your benefits and wage garnishment, apart from late fees and other expenditures, if timely action is not taken. Since bankruptcy can be quite confusing and daunting, the legalities should be left to experienced lawyers.


                *Are you more than 60 days past due on your mortgage?

                *Do you own a home?

                Are you currently working?

                By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

              • Being Prepared For Your Meeting of Creditors

                Being Prepared For Your Meeting of Creditors

                The meeting of creditors or a 341 hearing is a mandatory process conducted by the bankruptcy trustee when there is a filing of bankruptcy. During a filing of bankruptcy, the petitioner provides several documentations related to the situation including the petition and schedules. In the hearing process, the trustee gets the opportunity to ask the petitioner questions regarding the furnished information. The answers to these questions have to be answered under oath.

                If you are an individual who has filed bankruptcy, it is imperative that you have to be part of this meeting of creditors. Needless to say, this meeting can be an anxious ordeal and can make the individuals to panic. But be prepared for this meeting by knowing what will be asked can help alleviate the anxiety prior to appearing for this hearing. (more…)

              • Review Your Credit Report before Choosing To File For Bankruptcy

                Review Your Credit Report before Choosing To File For Bankruptcy

                Reviewing your credit report annually is extremely important so that you are aware of your current financial situation as well as checking if the information about your payments and debts is being accurately portrayed to the credit bureaus. People looking for a way out of the financial mess by filing for bankruptcy should make it a point to review their credit report before filing to ensure that all their creditors are included in the documents and schedules. As a part of the filing process, you are expected to list all your creditors. A simple mistake of omitting any one creditor just because you didn’t receive any collection notice from them recently, can turn into a big problem. (more…)

              • Rebuilding Credit is Easy with These Steps

                Rebuilding Credit is Easy with These Steps

                Though traumatic, filing for bankruptcy is an essential decision taken by people to get rid of dues which they don’t have means to pay off. Bankruptcy is of great assistance to people who have had continuous bad luck, which resulted in financial losses. Once the bankruptcy proceedings are over, bankruptcy filers get a fresh start with a clean financial slate. With some easy to follow steps, they can rebuild their credit score to live life comfortably. Here are some tips by lawyers of Los Angeles based law firm Recovery Law Group to help rebuild your credit: (more…)